Manpower Availability

Meghalaya has a fairly large pool of skilled, semi-skilled and unskilled labour. There is an adequate supply of secretarial staff in most parts of the State. A fair number of management and technical personnel have qualifications from recognised professional institutions and universities of India.

The table below indicates the current average range of compensations at various employee levels in the medium scale private sector organisations:

Average Yearly Compensation Range

It should be noted that the actual compensation paid may vary according to the company size and industry type as well as the skill, experience, length of service etc. of the individual.

Besides Salary and Wages, a compensation package typically includes various fringe benefits such as, annual bonus, monthly contribution to Provident Fund, monthly house rent allowance, terminal gratuity, annual medical expenditure reimbursement or allowance, annual leave travel allowance, accumulated leave encashment etc.

Indian Labour Laws are applicable throughout the country. The State Government may issue Additional State Rules under the above Laws from time to time. A brief overview of each of the major laws is provided below.

• The Factories Act of 1948 provides the rules regarding terms and conditions of employment in factories. This Act provides for welfare and personal security of labour by regulating working norms, working conditions, health and safety to workers etc. A similar provision has been enacted for the plantation workers vide the Plantation Labour Act 1965.
• The Minimum Wages Act, 1950 provides for the minimum wages to be paid to employees at the lowest level of an organisation.
• The Maternity Benefit Act, 1961 provides benefits to women workers in the event of their pregnancy.
• The Employees State Insurance Act, 1948 ensures comprehensive health coverage for employees below a certain income level.
• The Payment of Bonus Act, 1965 imposes a statutory obligation on employees to pay a minimum bonus of 8.33 percent of the basic salary. The maximum bonus is 20 percent of the basic salary.
• The Payment of Gratuity Act, 1972 and The Employees Provident Fund and Family Pension Scheme, 1971 provide for retirements benefits and social security dues to the employees.
• The Industrial Employees Standing Order Act, 1946 specifies the disciplinary code for employees. Disputes are regulated by the Industrial Disputes (Amendment) Act of 1976. Direct collective bargaining or negotiation between employers and employees is widely practiced.

The Trade Union Act, 1926 provides for the registration and operation of the trade unions. Membership in a trade union is not obligatory, but in practice most workers and office staff are enrolled as members of a union. The major trade unions are affiliated to political parties through the national trade union bodies.

The unions enter into binding contracts and settlement with the employers on behalf of the workers. Wages in the organised sector are left to the process of collective bargaining, conciliation, arbitration and adjudication.

The Industrial Relations Climate in the State is congenial. There is hardly any incidence of labour related trouble.

Employment of foreign technicians for the supervision and training of Indian personnel or for other purposes connected to implementation of new projects does not require the prior approval of the Reserve Bank of India provided their engagement conforms to certain prescribed conditions. However permission is required from the Reserve Bank of India for the remittance of earnings made in India to foreign countries and from the Home Ministry if the stay in India is to be for more than three consecutive months.